The FCC Just Approved A Proposal That Will Completely Change The Internet As We Know It
JAY YAROW AND STEVE KOVACH
May 15, 2014
A win for the big guys.
The FCC voted today 3-2 to approve creation of an “internet fast lane.”
This will have massive ramifications for how all internet companies operate in the future.
According to the FCC’s proposal, companies that deliver content over the internet like Netflix, Hulu, and Business Insider will be able to pay internet service providers (ISPs) for direct access to customers on a given network. That means their content will reach ISP subscribers much faster than content from companies that don’t pay ISPs for direct access.
For example, Netflix is already paying Comcast and AT&T for direct access to customers, and it has reported those customers are seeing faster streaming speeds.
But as we wrote yesterday, the proposal gives an unfair advantage to companies that can afford this “fast lane” to consumers. It makes it a lot harder for a new internet content startup to come in and compete with established giants. And without competition, those giants would be free to charge you more.